Hotel fees set to rise, says academic

A new report from a US academic has suggested that additional charges in hotels are set to continue rising, in an emulation of the profit model taken by many of the world's airlines.

The charges, which airlines term "ancillary fees," can range from internet access charges to minibar restocking fees in hotels and are thought to have brought in $1.55 billion (€1.2 billion) in 2009.

Although this is a fall from the $1.75 billion (€1.36 billion) worth of charges levied in 2008, New York University's Bjorn Hanson believes that as hotels fill up again, the upward trend will continue - leaving guests paying more for their stays.

In total, Dr Hanson believes hotels will recoup $1.7 billion (€1.32 billion) worth of fees this year.

"Fees and surcharges are especially profitable," says Hanson, adding that they "have increased every year except for periods following 2001 and 2009, periods of declining lodging demand."

For consumers, this could mean new fees, something that hotels have been reluctant to embrace up until now, or a hike in existing fees such as those levied for late checkout or WiFi.

Critics have slammed the widespread practice of charging for WiFi in hotels, which often averages €5 - €10 per hour, and considerably more for 24-hour access.

Hotel community site HotelChatter, however, believes that WiFi fees are becoming a differentiator for guests, and the landscape may soon change.

"While old stalwarts will probably never change their policies," the site says in its 2010 Annual WiFi Report, "many up-and-coming hotel brands realize free, reliable, basic WiFi is an easy way to earn guest happiness and loyalty."

Faced with the displeasure of frequent travelers, hotels are increasingly willing to waive "extra" fees that are applied to accounts for guests that are senior members of a loyalty program.

For everyone else, the basic room rate looks set to remain one line on a bill that is slowly increasing in length.

What extras can hotels charge for?

- Resort or amenity fees
- Early departure fees
- Reservation cancellation fees
- Internet fees (both WiFi and ethernet)
- Telephone call surcharges
- Costs of local calls
- Business center fees (i.e., cost of printing, sending/receiving faxes and sending/receiving overnight packages)
- Room service delivery surcharges
- Mini-bar restocking fees
- Charges for in-room safes
- Automatic gratuities and surcharges

Data from NYU Tisch Center for Hospitality, Tourism, and Sports Management - http://www.scps.nyu.edu

HotelChatter 2010 Annual WiFi Report - http://www.hotelchatter.com/tag/Annual%20WiFi%20Report

Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
News
science
Life and Style
Emoji are rapidly becoming the language of the internet
techWhy internet acronyms are being driven out by emoji
Have you tried new the Independent Digital Edition apps?
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    Recruitment Genius: Technical Supervisor

    £24800 - £29000 per annum: Recruitment Genius: As one of London's leading Muse...

    Recruitment Genius: Centre Manager

    £14000 - £18000 per annum: Recruitment Genius: This is an exciting opportunity...

    Guru Careers: Accountant

    £28 - 45k (DOE): Guru Careers: An Accountant is needed to take control of the ...

    Recruitment Genius: Hotel Assistant Manager

    £18000 - £20000 per annum: Recruitment Genius: This hotel in Chadderton is a p...

    Day In a Page

    Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

    Fishing is on Nigel Farage's mind

    Ukip leader casts a line to the disaffected
    Who is bombing whom in the Middle East? It's amazing they don't all hit each other

    Who is bombing whom in the Middle East?

    Robert Fisk untangles the countries and factions
    China's influence on fashion: At the top of the game both creatively and commercially

    China's influence on fashion

    At the top of the game both creatively and commercially
    Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

    The man known as GOD has a reputation for getting the job done

    Lord O'Donnell's three principles of rule
    Rainbow shades: It's all bright on the night

    Rainbow shades

    It's all bright on the night
    'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

    Bread from heaven

    Dutch survivors thank RAF for World War II drop that saved millions
    Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

    How 'the Axe' helped Labour

    UK will be 'run for the wealthy and powerful' if Tories retain power
    Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

    The price to be paid for challenging the rule of extremists

    A revolution now 'consuming its own children'
    Welcome to the world of Megagames

    Welcome to the world of Megagames

    300 players take part in Watch the Skies! board game in London
    'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

    Charlotte Gainsbourg on 'Nymphomaniac'

    Starring in one of the most explicit films ever
    Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

    Robert Fisk in Abu Dhabi

    The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
    Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

    Vince Cable exclusive interview

    Charging fees for employment tribunals was 'a very bad move'
    Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

    Iwan Rheon is returning to his Welsh roots

    Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
    Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

    It's time for my close-up

    Meet the man who films great whites for a living
    Increasing numbers of homeless people in America keep their mobile phones on the streets

    Homeless people keep mobile phones

    A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before